German inflation drops to near 3 year low of 1.2 percent driven by drop in fuel prices

Inflation in Germany, Europe's largest economy, has hit its lowest rate in nearly three years largely on the back of a fall in fuel costs.

The Federal Statistical Office said Tuesday that consumer prices rose 1.2 percent in April 2013 compared to the same month a year ago. That's down on the 1.4 percent rate in March and takes inflation to its lowest level since August 2010 when prices rose 1 percent.

The European Central Bank's target is to achieve inflation of just below 2 percent across the economy of the 17 European Union countries that use the euro. In April, eurozone inflation fell to 1.2 percent — a drop that was largely behind the ECB's decision to cut its benchmark interest rate to a record low of 0.5 percent.